Pacific Online sets P100-M capex for expansion

Listed gaming firm Pacific Online Systems Corp. has set aside P100 million for capital spending this year to further expand its lotto and keno-network outlets.

Willy Ocier, the firm’s president, said the capital expenditure would augment its 4,000-strong lotto network and its 1,500-keno network by 20 percent.

He noted that amid the incoming administration’s objective to curb illegal gambling, the gaming firm is optimistic about prospects of the country’s gaming business.

“There is a lot of challenge from the illegal numbers operation. Because of that the sales of legal games are reduced. Because of that the new administration has to think of ways to curb the illegal numbers game,” Ocier said on the sidelines of the company’s stockholders meeting.

Ocier pegged the sale of illegal numbers games at double that of the P80 million to P100 million daily sales of games like Lotto, which pays out taxes and other benefits that go to the Philippine Charity Sweepstakes Office.

Ocier meanwhile expressed confidence on the prospects of the company’s Mindanao franchise, against backdrop of the incoming Duterte administration.

Ocier said that the entry of the new administration of Davao Mayor Rodrigo Duterte sparked hope that investments in Mindanao including franchise of lotto outlets in Mindanao will substantially increase.

At present only 15 percent of Pacific Online’s 4,000 terminals are located in Mindanao.

Pacific Online recently reported that its net income for the first quarter of the year was 21 percent lower at P83.37 million versus the P105.41 million earned during the same period a year earlier.

Consolidated revenues reached P433.96 million, up 7 percent compared with the P405 million during the comparable period in 2015.